The Australian Institute of Superannuation Trustees (AIST) has urged the Government to consider the high levels of involuntary retirement before raising the Age Pension eligibility age to 70 years old.

AIST CEO Eva Scheerlinck said that it isn’t just people with health issues who are struggling to work until age 70.

“Many older Australians do not get to choose when they retire,” said Ms Scheerlinck. “We know that while health plays a role, other factors such as age discrimination, job type and caring demands all have a significant impact on when a person retires from paid work.”

Research conducted by the Australian Centre for Financial Studies and AIST found that up to 40 per cent of older Australians do not get to choose when they retire due to a range of factors.

Those working in community and personal services, in clerical and administrative roles, sales workers and labourers are between 35 and 50 per cent more likely to retire before the age of 60 than professional workers.

“Ensuring long-term sustainability of the system is important but we need to make sure there are appropriate mechanisms in place to protect older Australians who are unable to work longer,” said Ms Scheerlinck.

Ms Scheerlinck said that any increase would also add to workers’ concerns of not having enough money in retirement.

“Any changes that affect access to the Age Pension need to be part of a broader community conversation on retirement objectives,” said Ms Scheerlinck. “We do need to look at ways to keep Australians in the workforce longer but simply raising the pension age is not the answer.”

This media release was sourced directly from AIST and written by Janet de Silva.

The big five banks' threat to pass on the federal government's bank levy to consumers would cost customers less than $10 a year, a new report has found, as the Coalition's battle with the banks moves through its third week.

The report from the progressive think tank The Australia Institute is likely to be seized on by the Turnbull government a day after it wrote the $6.2 billion levy into law.

The institute found that if the banks followed through on the threat to pass the cost of the levy to shareholders via reduced dividends then it would cost the average superannuation balance $7 a year.

The majority of Australians who have a super account are shareholders in banks through their superannuation investment fund. According to the institute, the average superannuation balance holds $3141 of shares in the five major banks, with $166 in dividends paid in 2015-16.

A hit of 4.5 per cent from the tax-deductible bank levy to those dividends would equal about 60 cents a month, or $7 per year.

The figure follows weeks of calls from Treasurer Scott Morrison for customers to ditch their institutions if they attempted to pass the cost of the levy onto consumers.

The report found that if customers took up Mr Morrison on his advice to shop around at smaller banks not affected by the levy they could save up to $6000 a year on home loan repayments.

"Ironically, if the banks choosing to pass on the levy to customers led to people shopping around, mortgage holders could be big winners," the institute's senior economist Matt Grudnoff said.

Ubank had the lowest standard variable mortgage rate, 3.74 per cent, according the institute, compared to the top rate of the Commonwealth Bank at 5.39 per cent.

"The banks gain a big benefit from the implied government guarantee that they would be bailed out if they got into financial difficulties," Mr Grudnoff said. "It is only fair that the banks pay for this insurance."

A spokeswoman for the Australian Bankers' Association questioned the methodology of the Australia Institute in comparing like for like interest rates and said that it was not only big banks who were insured by government, but the whole system.

"In terms of the implicit guarantee, during the depths of the global financial crisis there was a three-and-a-half week period when the Australian government guaranteed all liabilities of all banks for no fee," she said. "This means the whole system was supported, not just the major banks."

Mr Grudnoff, who has historically been critical of Coalition policies, praised the bank levy as a reasonable substitute for a super profits tax.

Mr Morrison agreed with Mr Grudnoff's sentiment, calling on banks to accept the levy as necessary to support schools, hospitals and pension payments.

"Many other Australians have had to deal with some hard decisions we have had to make over the last four years," he said. "It's a fair levy, it's a reasonable levy, it's in place in other countries around the world and its also a levy that banks are in a position to support."

Foreshadowing the passage of the legislation through the Senate, the Bankers' Association ramped up its attacks this week, accusing the government of wiping off $39 billion in market value of the big five since the budget.

The association now has its target set at getting the levy removed from 2020-21, when the budget is set to return to surplus.

"If this is a tax for budget repair, then it is only fair that it be removed when the budget is repaired," the association's chief executive Anna Bligh said on Tuesday.

Mr Morrison has pegged the levy rate at 0.015 a quarter on banks that hold more than $100 billion in liabilities, making it difficult for future governments to raise the rate without new legislation.

Shadow Treasurer Chris Bowen said Labor's in-principle support for the government's bank tax "was not a blank cheque".

"We will continue to explore these issues through a Senate inquiry into the legislation," he said.

This article was originally sourced from the Sydney Morning Herald.

The wave of public discontent that’s changed how corporate Australia reports and discloses executive pay, is now moving to other types of organisations. The most recent example is professional accounting body Certified Practising Accountants of Australia (CPA), which has been subject to heated member debate about the remuneration of its CEO and management team.

CPA Australia ultimately disclosed the individual remuneration of its executive and board after extended lobbying by members.

Public disclosure of executive remuneration has not always been a feature of the Australian corporate landscape. Events over time have amplified public concerns about executive pay, cementing reporting and disclosure into law. Ultimately this may lead to a trend of voluntary disclosure among professional organisations.

Poor pay practice is associated with large unexpected corporate collapses and is a red flag for ineffective corporate governance. At the same time, the gap between executive salaries and the average Australian wage has widened. The Productivity Commission reports that the average remuneration of ASX100 company executives grew from 17 times average earnings in 1993 to 42 times in 2009.

In the past, member organisations like CPA Australia have only had to prove their value to members through their services but now members are calling for the disclosure of executive remuneration as a way to enhance corporate transparency and accountability. This is in the same way that public disclosures have allowed listed companies’ shareholders to better monitor the performance of their executive team.

Until 1998, disclosure of the remuneration paid to individual company executives was not required from Australian listed companies. Instead, a banded disclosure showing the number of executives in each relevant salary band was required.

The push to disclose executive pay started in 1998, when the Company Law Review Act (1998) introduced the requirement for listed companies to disclose the details of the nature and amount of the salaries of each director and the five officers of the firm receiving the highest salary.

Listed corporations responded slowly to this requirement. One problem was the confusion over whether the term used in the legislation - “emoluments” - covered equity-based remuneration like options. To assist companies in interpreting the new requirements, in November 1998 the Australian Securities and Investment Commission (ASIC) issued a Practice Note with the intent of clarifying some of the accounting-related requirements introduced by legislation.

Generally, corporate disclosures about executive remuneration were of pretty low quality after the legislation was introduced, especially disclosures about the value of equity-based remuneration. However, the unexpected collapse of telecommunications company One.Tel and insurance company HIH Insurance in 2001, amid concerns that poor remuneration practice was partly to blame, brought the issue of executive pay clearly into public focus.

In June 2003, ASIC issued a media release to provide unequivocal guidance about remuneration disclosures. ASIC’s chief accountant, Greg Pound, stated:

ASIC expects all listed companies to comply with their legal obligations, and will consider action against directors if full remuneration, including option values, is not disclosed.

Around the same time, the Australian accounting regulator, the Australian Accounting Standards Board (AASB), began to draft an accounting standard on remuneration disclosures. This was ultimately released in January 2004. In addition to clarifying many definitional issues, the standard set out explicit and detailed remuneration reporting and disclosure guidelines, including rules for the valuation and disclosure of equity-based compensation.

Also in 2004, the Corporate Law Economic Reform Program Act introduced expanded remuneration disclosures as well as a non-binding shareholder vote on remuneration.

The need for all these regulations became even clearer as poorly designed remuneration played a role in the 2008 global financial crisis. The remuneration practices of overseas financial institutions was heavily criticised for encouraging excessive risk taking in the lead up to the crisis.

Concerns over executive remuneration ultimately led to a Productivity Commission inquiry into executive pay in Australia. Published in 2009, the commission’s report recommends (among other things) the implementation of the current “two-strikes rule” for shareholder voting on remuneration. The two-strikes rule was introduced as law in 2011.

This historical path to the current rules on remuneration demonstrates that regulating in this area is fraught with difficulties.

What this means for professional bodies

Organisations like CPA Australia are not required to prepare a detailed remuneration report or to disclose the remuneration of individual directors or executives. Likewise the individual pay of key executives of government supported organisations such as Australia Post or the Australian universities is not a compulsory disclosure.

Along with CPA Australia, the professional accounting body Chartered Accountants Australia New Zealand (CAANZ) disclosed CEO Lee White’s 2017 remuneration in response to inquiries from the Australian Financial Review. Similarly, the Tax Institute revealed the remuneration of its CEO Noel Rowland. However, a third Australian accounting body, the Institute of Public Accountants (IPA), has not disclosed individual executive remuneration.

When it comes to how these professional bodies usually report remuneration, a total remuneration figure for the executive team or providing a banded remuneration disclosure (which shows the number of individuals within each relevant salary band above a specified minimum salary) is usually common practice. For example, the Australian Institute of Company Directors (AICD) revealed the collective remuneration of its 12 person executive team but not individual pay. Australian universities generally provide a banded remuneration disclosure but also reveal individual vice chancellor pay levels in response to media inquiries.

There is murkiness around the clear disclosure of executive pay outside of the public company sector. Individual remuneration is generally not disclosed to members or to the public but can be revealed at the discretion of the organisation concerned if inquiries are made.

It’s clear from the scenario unfolding around CPA Australia that members expect disclosure of individual executive and director pay as part of the transparency and accountability owed to them by their professional body. There’s also an argument for a similar duty to disclose to stakeholders for government owned or funded organisations.

Further regulation may not be needed to extend remuneration reporting requirements outside of the corporate sector. However, this may be the start of a trend in voluntary remuneration disclosure, as an act of accountability to stakeholders. After all, sunlight is said to be the best disinfectant.

This article was sourced from The Conversation. 

You would think most sports would jump at the chance to be included in the Olympic Games, but parkour is a little more complicated.

The sport, which involves jumping, climbing and running through urban environments, is being courted by the International Gymnastics Federation (FIG), which wants to establish a new parkour-inspired discipline.

But the move has provoked a strong backlash from the parkour community.

"The big bullies are coming in and just trying to muscle in and take it away from everyone," said Matthew Campbell of Melbourne, who has been practising parkour for 13 years.

"It is just people with more power and money looking to stomp on everyone else".

So why are they so upset? Describing parkour as a sport can be contentious. For many practitioners it is as much a philosophical exercise as a physical one.

For most of them it's not about competition.

"Parkour by nature is non-competitive, so as soon as you make it a competition, to me, it is not parkour anymore, it is just the moves," vice president of the Australian Parkour Association Amy Han said.

"We are a sporting nation and I get that, and a lot of people understand sport and exercise and competition through having levels and awards and that's how you know you are progressing, and that's how you know that you're good at something, but that is not the parkour mentality."

In May, FIG ran its first parkour-based test event, an Obstacle Course Cup in Montpelier, France, which was attended by officials from the International Olympic Committee.

Significantly, the event was supported by two of the founders of parkour, David Belle and Charles Perriere.

In an open letter to the parkour community, Belle and Perriere said the time had come "to put a foot across the line that separate[s] us from competition."

Australian Parkour Association Amy Han balances on one hand in Melbourne.

But many long-time enthusiasts are dismayed by this new turn.

Parkour associations in Australia, the UK, France, New Zealand, Argentina and Singapore are refusing to work with FIG and have protested against the "encroachment and misappropriation of our practice."

What does Gymnastics Australia have to say?

Gymnastics Australia (GA) is supportive of FIG's push to incorporate parkour. Last year, it launched a parkour-inspired Free-G program in 65 gyms across the country.

The chief executive of GA, Mark Rendell said there has been some "mixed messages" from the parkour community, but he was confident an agreement could be reached.

A man lunges for a retaining wall as he executes the Parkour move the "Tic-Tac" in inner Melbourne.

"I think gymnastics is the foundation of all sports and parkour is an outcome of learning those fundamentals - we think it is a great opportunity to bring more disciplines that are closely aligned, closer together and work collaboratively for the growth of the sport," he said.

"I think the president of the international gymnastics federation has made it clear that he wants to respect the traditions and values of parkour."

There are currently 560 gymnastics clubs across Australian with more than 200,000 active participants.

The majority of these participants are female and under 12, and the sport is keen to broaden its base.

"We see parkour as an opportunity to keep kids in the gym longer and give them an opportunity to achieve their sporting goals," said Rendell.

What happens now?

FIG is now planning to establish a Parkour Committee, which will be chaired by David Belle and will hold its first meeting at the end of July.

The organisation is aiming to hold sprint and freestyle obstacle course world cups in 2018 and 2019, and a world championships in 2020.

Meanwhile, parkour associations are planning to continue their resistance.

"We are fighting against a lot of money and a lot of power, so it's going to be difficult," Campbell said.

"But it's not in the nature of parkour people to give up."

This article was originally sourced from the ABC.

Five Sydney breweries have joined forces to launch The Inner West Brewery Association (IWBA), which aims to cement Sydney’s Inner West as the Craft Beer Capital of Australia.

The founding members are Batch Brewing Company, Wayward Brewing Company, Young Henrys, Willie the Boatman and Grifter Brewing Company.

“We’ve felt for some time that the inner west is really developing as one of the most important beer areas in Sydney and also Australia,” IWBA president and Wayward founder Peter Philip told Brews News.

“We wanted to get together to achieve a few things, one was working with local government to streamline some of the planning regulations.”

Separately, Philip was recently nominated to the board of the Craft Beer Industry Association – soon to be rebirthed as Independent Brewers Australia – but says IWBA is best placed to achieve its members’ local objectives.

“My view is that IBA is a national body and should be representing national interests. Whilst we definitely have a desire to push excise reform, we really think that that’s the job of CBIA or IBA now,” he said.

Philip said there are 14 production breweries in the inner west and all will be invited to join, including Lion-owned Malt Shovel Brewery, Wayward’s nearest neighbour.

“This is really about being in the inner west, we are great friends with the guys at Malt Shovel and we will be encouraging them to join,” he said.

“Having five founders was really about trying to streamline the process so that we could get something done quickly.”

The association was foreshadowed at a recent forum for the brewers organised by Federal Labor MP Anthony Albanese, the MP for local electorate Grayndler, who was present at this morning’s launch hosted by Batch Brewing.

14 and counting

Philip’s tally of 14 breweries in the area includes one that is yet to start production, Sauce Brewing in Marrickville.

“I know of four more that are planning on setting up but I haven’t included them. They’re in the early stages of planning,” he said.

Philip said the inner west actually has a higher density of breweries than Portland or San Diego, if you take into account the limited take-up of craft beer in Australia.

“Really, we should have one brewery in the inner west to be on the same density as Portland. It’s getting pretty crowded and pretty dense,” he said.

He said this is why it is crucial for the inner west brewers to collaborate on initiatives that will increase demand for their beers, particularly considering recent sobering news about the financial hardship suffered by some brewers.

“You’ve got to run your business very carefully. You look at Brewcult and Hendo – here you’ve got a great guy who makes fantastic beer and he couldn’t be successful,” he said.

“It is a very competitive market. I know from our standpoint, we haven’t paid back the money we put into the business.”

The IWBA also announced that the first Inner West Beer Fest will be held in early 2018.

This article was sourced from the Australian Brews News.

Fitness Australia has brought a diverse array of members of the fitness industry together last week in an extraordinary meeting to discuss a range of issues facing fitness in the country.

In an inspiring show of unity, a combination of both Fitness Australia registered and non-registered fitness businesses and powerbrokers, representing a range of modalities, exchanged views in an attempt to take stock of the direction of the industry and pressing issues within it such as:

• The National Training Package review;
• The Fair Work Ombudsman’s interest in ‘sham contracting’;
• Changes to the 457 Visa arrangement;
• Fringe benefits tax exemption campaign;
• Fair Work Commission ruling on ‘all up casual rates’; and
• Increased tariffs resulting from the amalgamation of APRA and PPCA tariff collecting functions. 

The afternoon was an opportunity for all corners of the Australian fitness industry to voice concerns, share ideas and project into the future, but also a chance for Fitness Australia to better understand those concerns and how best to move forward in terms of addressing them at the appropriate level.

“This was a truly rare opportunity to bring such a diversity of people and businesses together, and our industry is better for it,” said Fitness Australia CEO, Bill Moore.

“As a peak body, we’re all about taking the leadership role in the industry and achieving positive outcomes for all.

“At its core, Fitness Australia represents the interests of the fitness industry as a whole, whether that be to Government or otherwise, and part of doing that effectively is understanding the real concerns, challenges – as well as positives – that are happening out there on the ground.

“That’s what this meeting was all about, and those outcomes will shape how we approach representing the industry moving forward.”

This article was originally sourced from Fitness Australia. 

As your member association, one of the things the ADA is always striving to ensure that your membership provides you with as much value and opportunity as possible.

That’s why we’re thrilled to announce our new initiative with Macquarie, which gives you access to a range of products and services including:

• exclusive offers on home loans, bank accounts, vehicle loans, and other banking products;
• dedicated team of banking specialists;
• financial insights for different life stages;
• smarter banking tools to help you manage your money.

Whether you’re buying a practice or fitting it out, or buying a new home or car, you’ll be able to take advantage of products and business insights that are matched uniquely to your personal and professional requirements.

Macquarie has a successful history of working with professionals in healthcare, a relationship built on supporting and understanding the needs of individuals and businesses, and providing them with tailored products and services.

To access this range of exciting new benefits, head to Macquarie Bank.

This article was originally sourced from the Australian Dental Association.

The AMA is warning that the planned new National Framework for Maternity Services (NFMS) is doomed to fail due to inadequate stakeholder consultation and the spectacular failure to adequately engage expert obstetric, general practice, and other crucial medical specialists in its development.

Following an agreement at the April 2016 COAG Health Council meeting, the Queensland Government was tasked to lead the project to develop the NFMS, under the auspices of the Australian Health Ministers’ Advisory Council (AHMAC).

AMA President, Dr Michael Gannon, said today that the AMA first became aware of the NFMS project in December 2016 – eight months after it commenced, and without any direct contact from AHMAC’s Maternity Care Policy Working Group (MCPWG) or its consultants – and has raised concerns about the project ever since.

Dr Gannon, an obstetrician, said the AMA’s concerns are shared by the Royal Australian and New Zealand College of Obstetricians and Gynaecologists (RANZCOG) and the National Association of Specialist Obstetricians and Gynaecologists (NASOG).

“It is outrageous that specialist obstetricians and GPs have been marginalised in this process. You could be forgiven for thinking it a joke,” Dr Gannon said.

“Obstetrician-led care is an essential tenet of Australia’s maternity system.

“There is clear and compelling evidence that shows that obstetrician involvement translates into lower mortality rates and fewer complications, not to mention lower costs.

“When issues and problems arise during labour, it is invariably an obstetrician who is called to assume responsibility and manage care, working to ensure the best possible outcome for mother and baby.

“I am pleased that midwives are strongly represented on the Working Group responsible for drafting the NFMS, and in subsequent consultations. They are key members of the maternity team.

“But not involving a single obstetrician in a 12-member group tasked with looking at maternity services is like conducting a law and order review without talking to the police,” Dr Gannon said.

Dr Gannon said that AMA members have reported maternity services and outcomes in their respective States have deteriorated under the current National Maternity Services Plan.

“Obstetricians are concerned that not enough is being done to ensure women have access to high quality, collaborative models of care,” Dr Gannon said.

“Despite this, the consultation undertaken to develop the NFMS has neglected to actively engage specialist medical practitioners who are at the centre of care for mothers and babies.

“The draft Framework, which was released for public comment in March 2017, lacked substance and provided no guidance for public hospital maternity services about what high quality care should look like.

“The NFMS is shaping up as a lost opportunity to achieve the best possible maternity care for mothers and babies in Australia.

“GPs not only routinely offer obstetric services in outer metropolitan, rural, and regional areas, but deliver antenatal and postnatal care to thousands of Australian women. There was not a single GP representative appointed.

“Further, there is no acknowledgement that best practice care of mothers involves anaesthetists, obstetric physicians, psychiatrists, pathologists, and haematologists, none of whom were invited to assist in the development and drafting of the NFMS.

“The AMA wants to see a strong NFMS.

“It must be developed in genuine partnership with the medical profession and its peak bodies.

“These are the medical professionals who deal with maternity services, day in and day out.

“They’ve seen what works, and they know where the system is not working well.

“Their experiences and views should have been at the table, from the beginning.

“Inviting them to a consultation a month before completion of the draft NFMS does not seem a genuine attempt to listen to experts at the coalface of maternity services.

“The AMA is calling on COAG, AHMAC, and the NFMS Working Group to formally and genuinely engage with the medical profession – obstetricians in particular – before there is any further policy development or public reporting on the Framework.

“The health of mothers and their babies deserves a thorough and professional Framework to ensure the best possible care,” Dr Gannon said.

This article was originally sourced from the Australian Medical Association.

ASI to team with Internet Vision Technologies (IVT) to deliver expanded solutions for association/not-for-profits in Asia-Pacific

Latest acquisition will bring enhanced services and support to the not-for-profit sector and increase ASI’s footprint in the region

Melbourne, VIC (8 June 2017) — Advanced Solutions International (ASI), a leading global provider of software and services for associations and not-for-profits, announced today that it has purchased the assets of Internet Vision Technologies (IVT), a Victoria, Australia based highly respected software provider to more than 160 Australian associations and not-for-profits.

In joining forces, ASI will be able to deliver a broader range of products and services to IVT clients and other membership organisations and associations of all types and sizes. More organisations in the region will have access to the performance improvement and engagement best-practices ASI has gleaned from working with more than 4,000 clients around the world. IVT clients can take advantage of award-winning support and IVT staff will be exposed to greater career opportunities.

“IVT and ASI are a great fit — the two companies will be stronger together and can provide the very best solutions and services to the association and not-for-profit sector in Australia and New Zealand,” said Paul Ramsbottom, ASI Asia-Pacific’s Managing Director. “ASI is committed to expanding our presence here in the AP region and this investment further demonstrates that commitment.

The agreement will not impact clients’ current use of ASI’s iMIS 20 Engagement Management System (EMS)™ or IVT’s Association Online, nor will it affect the high levels of service and support they have come to expect from both companies. The combined business will continue to invest in and develop both the iMIS 20 and Association Online products.

Jonathan Oxer, IVT’s founder, and Ann Oxer, General Manager, will continue to play an active role in the business going forward. IVT staff will have the opportunity to work from home or in ASI’s Melbourne offices.

“I am so proud of everything IVT has accomplished over the years and I am delighted we’ve found the right partner in ASI to ensure our clients are in good hands,” said Jonathan Oxer. “These clients will now have access to solutions and resources that will help make them more efficient, flexible, and responsive to their members and supporters. It’s a great move for us all.”

Financial terms of the deal were not disclosed.

About ASI

Advanced Solutions International (ASI) is a recognised global, industry thought leader that focuses on helping associations and not-for-profits increase operational and financial performance through the use of best practices, proven solutions, and ongoing client advisement. Since 1991, ASI has served nearly 4,000 clients and millions of users worldwide, both directly and indirectly through a network of over 100 partners, and currently maintains corporate offices in the USA, UK, Canada, and Australia.

Contact: Paul Ramsbottom 

Ph: +61 419 700 022 

E: pramsbottom@advsol.com 

This media release was sourced directly from the ASI website here. 

Chartered Accountants Australia and New Zealand has announced that Rick Ellis will join the organisation as its Chief Executive Officer.

Mr Ellis is currently the CEO of the National Museum of New Zealand Te Papa Tongarewa in Wellington, where he was responsible for transforming New Zealand’s iconic cultural institution and leading tourism destination. His career spans over 30 years including tenure as Group Executive Telstra Media, based in Sydney and prior to that CEO of Television New Zealand based in Auckland.

He graduated with a BCom from the University of Auckland in 1976, and has had a career in the IT industry in senior executive roles, in which he worked for US Multinationals for over 25 years in Australia, the UK and New Zealand.

He replaces Lee White who joined Chartered Accountants ANZ as a General Manager in 2009, and served as CEO since 2011. Lee over saw the merger of the Australian and New Zealand institutes, and the alliance with the Association of Chartered Certified Accountants (ACCA).

Murray Jack, Chairman, CA ANZ said: “The profession is in a time of significant change. We’ve invested in our people and our digital assets, and are now looking to continue to transform what we do and how we do it so that we remain relevant as a profession, and as a member organisation. Rick brings many skills based on years of international experience to this task. We are really excited to attract someone of Rick’s reputation and calibre to our organisation.”

Mr Ellis will be based in Sydney, and will join CA ANZ at the end of July. Prior to this time Simon Grant, Head of Members will act as Interim CEO.

This media release was sourced directly from the Chartered Accountants Australia and New Zealand website here.